Paris Stock Exchange: several markets in one – Le Revenu

If a company wishes to have its securities admitted to the Euronext Paris markets, it can choose from different markets depending on its size (valuation, offering and/or turnover), regulatory environment and type of target investors.

In order to be listed on one of these markets, a candidate company must meet specific entry criteria. We are looking two great chambers in France : the main regulated market formed by Euronext and the more flexible unregulated market formed by Euronext Growth and Euronext Access. These segments have been created with the aim of increasing the visibility of investors. The same goal with numerous indices animated and calculated by Euronext Paris, the most famous of which is the CAC 40.

Euronext, the reference regulated market

Companies listed on the regulated market Euronext Paris are subject to a set of rules issued at the European level and applicable to all regulated markets in the countries of the European Union (EU).

This harmonized pan-European environment, especially in terms of financial information and accounting standards, it provides direct access to a very large base of national and international investors. This unique list gathers all shares listed on the Paris Stock Exchange.

The latter, whether they are multinationals or family companies, benefit from a homogeneous regulatory framework: the same obligation to publish financial results or, in particular, to market them.

For greater clarity, French regulated markets are segmented by market capitalization levels:

  • Section A brings together companies whose capitalization exceeds one billion euros (“blue chips),
  • Section B includes companies valued between 150 million euros and one billion euros (average values),
  • Section C finally, it brings together companies whose market value is below 150 million euros (small values).

This Eurolist segmentation results from the average market capitalization calculated for the last two months of the previous year. Please note that this list only contains French values. In addition to these three sections, there are two subgroups: one for Eurozone companies, the other for international companies (outside the Eurozone) and which are listed in Paris.

Euronext Growth, a regulated alternative for SMEs

Euronext Growth, originally called Alternext, offers a more flexible access to the market, with simpler admission rules, limited restrictions and fewer ongoing commitments than the Euronext regulated market, the exchange can be considered a financing solution.

Dedicated primarily companies with small and medium capitalization, mid-cap companies (ETIs) and high-potential companies, this market is open to both professional and non-professional investors.

This market is managed but not regulated in the sense of EU directives. Listed companies actually have lower obligations than the main sub-funds, especially when it comes to publishing regular financial information.

However, the Market Abuse Directive applies as well as the EU Prospectus Directive in connection with a public offer.

Euronext Access and Access +, two entry points to the capital markets through a simplified listing procedure

Euronext Access, formerly called the Free Market, is also a market there unregulated accessible to all types of companies wishing to access the capital markets without having to meet all the eligibility criteria required by other markets.

This market, which has even more flexible rules than those applicable to Euronext Growth, is particularly suitable for SMEs and ETIs that want to increase their visibility and notoriety thanks to the status of a listed company.

Listing on Euronext Access can subsequently be a the first step to a more mature market. However, you should know that this section, which does not have the same transparency conditions as the main market, suffers from a certain mistrust of investors.

Companies listed on Euronext Access, for example, are not required to publish quarterly or half-yearly financial statements, only annual publication is required.

Within Euronext Access, a new section called Euronext Access + was created in June 2017. Designed for fast-growing start-ups and SMEs, this new section acts as a stepping stone towards the other more mature markets of Euronext Paris by encouraging the companies concerned to structure and acclimatise to the realities of stock market life without being too many limitations.

Companies admitted to trading on Euronext Access+ get additional help and their shares benefit from greater visibility.

Payment Terms

There are two types of regulation on the Paris Stock Exchange:

cash system which is the norm: the payment of securities and their delivery takes place simultaneously. In this system, when you decide to buy shares, you pay for them immediately and they are credited to your securities account or your PEA.

deferred settlement service (SRD), which enables forward trading, that is, there is a time lag between the day of trading (purchase or sale) and the day of settlement or delivery of securities. So you can buy shares and pay for them only at the end of the month, this system is similar to credit. However, SRD does not apply to all stocks, only a selection of them benefit from it.

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